Insure

INSURANCE IS A key part of your financial safety net. You need it to protect you, your family and your financial assets from all the dangers that can come along in life to the extent you possibly can. You'll do that if you remember to:

• Evaluate your risks in each of these areas to decide how much coverage you need.

• Do business with an insurance company that is financially strong and has a good track record of settling claims promptly and fairly.

• Choose a reputable insurance agent licensed to sell insurance in your state who is knowledgeable about the products he or she sells and who answers all of your questions.

• Comparison shop for the best rates and any discounts you might be able to get on your premiums.

MONEY TIP

Sure, insurance policies are confusing and insurance agents don't always spell things out in clear, basic English. Shop for insurance as hard as you awould shop for a car or any other major puchase. Don't pay until everything -- including costs and discounts -- has been made clear to you in language you can understand.

BONUS TIP

How To Save On Any Kind Of Insurance

YOU DON'T WANT to pay full price for insurance. You want to buy the coverage you need at a discount. Ask every insurance company and agent you talk to about the discounts they offer that can cut your insurance bill. Here are some examples:

• Installing dead-bolt locks, smoke detectors and burglar alarms can usually bring discounts of 5% each off your homeowner's premium—as much as 15% or 20% if you install a sophisticated home-security system. There may be a discount if you're near a fire station.

• Having a teenage driver who gets good grades. In fact, good grades usually bring a bigger discount than just having your child take a driver's education course.

• Buying all your coverage from one company.

• Raising your deductible—the money you have to pay before your homeowner's or auto insurance kicks in. You have to decide how much you can afford to fork out if something bad happens. But usually, the higher your deductible, the lower your premiums will be.